European PE Market Outlook Is More Pessimistic Than PP
The outlook for the European PE market is more pessimistic than PP. Maria Ciliberti, vice president of Nordic Chemicals' polyolefin marketing and new business development, said at the S & P Global Platts Petrochemicals conference in Rotterdam on Tuesday.
"While short-term capacity growth will cause price pressure on PEs and short-term PP markets are in different positions, we are considering a number of investments, including the PDH in Belgium."
According to S & P Global Platts Analytics, the global PE market is expected to see an oversupply from 2017 to 2023. On the other hand, it is estimated that by 2022, the global PP market will continue to be tight, with a deficit to 2026.
From 2023 onwards, the market will need 12.4 million tons of PP capacity to achieve a sufficient balance and keep pace with demand.
At the conference, many people talked about the huge amount of liquefied petroleum gas in the United States and the value of raw material flexibility in exploring profit margins.
Cleavage of light raw materials to obtain less propylene, thereby increasing the global emphasis on propylene production.
Most European cracker uses naphtha to produce propylene.
Last November, Borealis said they will successfully complete the pre-design phase of a new PDH plant in June before entering the front-end engineering and design phase. The plant, located in Kallo, Belgium, will produce propane from propane with a production capacity of 740,000 tonnes / year and is expected to start production in early 2022.
Setting up a PDH plant in Europe will enable Nordic chemicals to take advantage of the cost advantages of propane to produce feedstock.